Simple interest

Front

What is the formula for simple interest?

Back

I = P * r * t

Front

What does the 't' stand for in the simple interest equation?

Back

Time

Front

What does the 'P' stand for in the simple interest equation?

Back

Principal

Front

What does the 'r' stand for in the simple interest equation?

Back

Rate (% as decimal)

Front

If you invest $1000 at a rate of 5% for 3 years, what is the simple interest earned?

Back

$150

Front

What is the principal if the interest earned is $200 at a rate of 4% over 5 years?

Back

$1000

Front

How do you convert a percentage rate to a decimal for calculations?

Back

Divide the percentage by 100.

Front

If the simple interest earned is $300, the principal is $1200, and the time is 2 years, what is the rate?

Back

12.5% (0.125 as decimal)

Front

What is the relationship between principal, rate, time, and interest in simple interest?

Back

Interest is directly proportional to principal, rate, and time.

Front

If you want to find the time it takes to earn $200 in interest on a principal of $1000 at a rate of 5%, what is the formula?

Back

t = I / (P * r) => t = 200 / (1000 * 0.05) = 4 years.